ASX RELEASE 29 September 2006Eureka Energy Limited (ASX:EKA,...

ASX RELEASE 29 September 2006
Eureka Energy Limited (ASX:EKA, “Eureka”
or “Company”)
SUGARLOAF-1 PROGRESS REPORT
28 METRE POSSIBLE GAS PAY INTERSECTED IN SECONDARY
TARGET
Wire-line logs were successfully run over the open hole section of the well between 6,500
feet (1,981 metres) and present well depth of 14,480 feet (4,413 metres).
Interpretation of logs by the operator, Texas Crude Energy Inc, indicates a 92 feet (28
metres) zone of possible gas pay corresponding with the zone of gas shows obtained
during drilling in the secondary target (reported to the ASX on the 20th September 2006).
While Eureka considers that the logs are encouraging, the commercial significance of loginterpreted
possible pay can only be assessed by flow testing and that there is a risk that
the zone may not flow at commercial rates. Flow testing of the zone is not programmed at
this time but will be considered after the well has been drilled to total depth and the primary
target assessed.
The current operation at the well-site is the running of the 9-5/8 inch intermediate casing to
present depth of 14,480 feet (4,413 metres). Once run and cemented, the well will continue
drilling in 8-1/2 inch diameter hole to the primary target expected between approximately
17,000 feet (5,182 metres) and proposed total depth of 21,000 feet (6,400 metres). There is
a further secondary target in carbonate rocks between present depth and just above the
primary target.
Assuming trouble-free drilling, the primary Hosston Formation target is expected to be
reached in mid to late October and total depth in mid November.
ASX releases will continue to be made routinely every Wednesday unless there are material
matters which require an earlier release.
Participants in the Sugarloaf-1 well are:
Eureka Energy Ltd 1 12.5%
Texas Crude Energy Inc (Operator) et al 2 41.5%
Aurora Oil & Gas Limited 20.0%
Adelphi Energy Ltd 20.0%
Empyrean Energy plc 6.0%
1 Through its wholly-owned US subsidiary, Hosston Oil & Gas LP
2 Includes other private US companies / investors
Further details of the Sugarloaf Prospect and associated farm-in terms are
summarised on our website at www.eurekaenergy.com.au which also
includes a brief review of the US gas market and fiscal terms.
For further information please contact Graham Dowland or Alex Neuling on
08 9440 2640 or email [email protected]
Information contained in this report concerning the background to the Sugarloaf Project,
was compiled from material provided by Texas Crude Energy Inc and reviewed by P D
Allchurch, BSc, FAIMM, MPESA, who has had 35 years experience in the practice of
geology and more than 5 years experience in petroleum geology. Mr Allchurch has
consented to the inclusion in this report of the matters based on this information in the form
and context in which it appears.
CORPORATE INFORMATION
Capital Structure Directors / Officers Website
41.5 million ordinary shares
41.5 million options
(exercise price $0.20, expiry
31 March 2008)
Graham Dowland
(Chairman)
Michael Price (Director)
Alex Neuling (Director /
Secretary)
www.eurekaenergy.com.au